Experience the pulse of Asia's innovation and connect with Asia's technology industry!Love our content? We love you too!Organizing an event? Share it with Asia's tech community on e27!Change the world! Over 200 tech industry jobs in Asia and growing
Resource  10, Aug 2012

4 essential duties of a Singapore company director

By
Male and female employee discussing a chart

(Credit: Rikvin)

Singapore is undeniably a hot destination for company incorporationand some entrepreneurs and HNWIs are making a beeline to open set up headquarters in the republic.

As many as 7000 multinationals have also demonstrated the importance of establishing a presence in Southeast Asia via Singapore as they understand the strategic importance of the country as a gateway for their business to the rest of Asia.

However, it is not enough to understand the merits of doing business via the republic or entertain the idea of Singapore company registration. Before signing up one’s incorporation documents, it is of utmost importance to understand the basic duties of a Singapore company director.

Fiduciary Duties of a Director in a Singapore Company

One of the requirements to register a Singapore private limited company is at least one Singapore resident director. This means that the person has to be a citizen, Singapore permanent resident or Entrepreneur Pass holder.

In general, a Singapore director has to act with honesty while discharging his duties with a sound mind and diligence. As he acts on behalf of the company, he should not do anything to further his personal interests at the cost of the interests of the company.
The following are his fiduciary duties:

1. Duty to act honestly and in good faith in the interest of the company.

2. Duty to avoid clash of interests (his personal interests with those of the company).

3. Duty of care, skill and diligence.

4. Duty not to misuse his powers and information as a director of the company.

Knowing all about the duties and following them is essential 

Wherever a director finds that he has personal interests that are in conflict with the interests of the company, it is the duty of the director to reveal the facts in front of the board of directors to seek approval of the company before proceeding.

If the director wants to transact business with an entity and he has any interest in this transaction, it is the duty of the director to reveal the extent and nature of his interest in the entity and in particular, the transaction that he wants to conduct with the entity as the director of the company.

Unfortunately, many new directors do not understand that the above is a statutory duty of a director.

The failure to disclose the nature and extent of interest while transacting with an entity as the director of a company can result in a fine not exceeding $5000 of imprisonment for a term not exceeding 12 months.

This post was originally published on Rikvin as Four Essential Duties of a Singapore Company Director.

About Rikvin

Established in 1998, Rikvin has since partnered with thousands of investors, entrepreneurs and professionals in their pursuit to access business opportunities overseas. Rikvin’s areas of expertise include Singapore company incorporation, offshore company setup, accounting, taxation and other related corporate services. Rikvin is also a licensed employment agency with the Ministry of Manpower (MOM) and offers a full spectrum of Singapore work visa services for foreign professionals who wish to relocate to Singapore.

Guest

Guest

We invite members from Asia's tech industry and startup community to share their honest opinions and expert knowledge with e27 readers. If you are interested to share your point of view, please send an email to writers[at]e27[dot]co

Work for a Startup

Correspondent
e27
Technician
StaffOnDemand
Marketing & Business Development Internship
StaffOnDemand
All Categories Jobs in Pakistan
JOBZ.PK
Management Associate
TIEN Academy